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Baldor, Inc. measures the marginal rate of technical substitution (MRTS) at MPL/MPK = 3. The prices of labor and capital faced by Baldor are such that currently W/R = 4.
a. Is Baldor minimizing its costs?
b. What can Baldor do to improve its situation?
James Pizzo is the president of a firm that is the industry price leader; that is, it sets the price and the other firms sell all they want at that price. In other words, the other firms act as perfect competitors. The demand curve for this indust..
A spike in the unemployment rate - the biggest in more than two decades - raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing and credit markets are leading the U.S. economy into a painful reces..
In (a) sketch the graph of the given function, and then draw the tangent line at the point P. (b) Using your sketch, approximate the slope of the curve at P, (c) Use (1) to determine the exact value of the slope at P.
Since the VPAc€?cs trust you, they asked you to figure out the most they should pay for a license from SohnCo.
Sydney is interested in starting a new business, but would have to give up a job with a total compensation of $100,000 per year. After researching the new business opportunity, Sydney developed the following estimates. Annual Revenues: $300,000
The firms and workers in Alpha form expectations adaptively. The firms and workers in Omega form expectations rationally. Their otherwise identical economies are initially in equilibrium at the natural level of output with 10 percent inflation.
The company will make the move when its real estate sinking funds has a total value of $1.2 million. If the fund currently has $400,000 and the company adds $50,000 per year, how many years will it take for the account to reach the desired value.
Today's mainstream economists speak of "rational economic man" as the fundamental character of people, immutable across time and space, and the foundation of economic activity. Key characteristics of "rational economic man" are atomism, egoism, a..
How might Google's search-engine dominance harm consumers? Help them? LO10-3
Describe the rollforward process. Under what conditions should rollforward be used?
Does econometric analysis using data from controlled and mismanaged economies run the danger of misconstruing causality? Explain. Does this problem extend to research on the American economy?
Describe the adjustment process, assuming that output began at its natural (fullemployment) level.
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